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HomeMy WebLinkAboutRetirement Committee - Minutes - 08/03/1989• GENERAL EMPLOYEE RETIREMENT COMMITTEE MEETING MINUTES AUGUST 3, 1989 MEMBERS PRESENT: MEMBERS ABSENT: Jerry Brown Mollie Mercer Angelina Powell Alan Krcmarik Dennis Sumner Sue Wilcox, Secretary CALL TO ORDER: Chairperson Dennis Sumner called the meeting to order at 1:00 p.m. APPROVAL OF MINUTES: Minutes of the July 27, 1989 meeting were approved with one correction. On page 2 under item 5, beginning with the last sentence on that page ("It was noted this only applies...) and including the rest of the material in the Main Points section on page 3 (through ...on benefits projections.") should be deleted. ITEMS OF NOTE: Sue distributed the GERC notebooks. As discussed at the 7/27/89 meeting, these will be used by committee members to help consolidate minutes and reference material used by the GERC in our work. AGENDA REVIEW: Angie expressed concern that the agenda format be modified to ensure any • committee reports or other open items be kept as topics of discussion. The Committee agreed with this concern. Dennis and Sue offered to modify the agenda format to address this issue. DISCUSSION TOPICS - OPEN ITEMS 1. MEDICAL BENEFITS FOR RETIREES/DISABLED EMPLOYEES MAIN POINTS: Mollie reported the August 10th meeting was being changed to August 17th at 10:00 a.m. in the Employee Development Conference Room. DECISIONS/CONCLUSIONS: N/A NEXT STEPS: Mollie will attend that meeting. 2. WORK PLAN FOR 1989-90 A. CONVERSION TO MONEY -PURCHASE PLAN MAIN POINTS: This is such a major undertaking, we need to know what steps and what kind of time frame are involved. DECISIONS/CONCLUSIONS: Mike Powers, Pete Dallow, Jaime Mares, and Alan will be asked to discuss this in depth at a special meeting sometime in the middle of September. It was also agreed that another meeting would be doJaime as soon after the meeting with Mike Powers, Pete Dallow, and Jaime Mares as possible in order to discuss this information. • NEXT STEPS: Sue will contact these four people and try to find a convenient date. The purpose of the meeting will be to explore the money -purchase concept and develop a study plan. Meetings for the money -purchase plan study will be scheduled as needed. B. COST -OF -LIVING ADJUSTMENT MAIN POINTS: Our timing on this will depend on whether we pursue the money -purchase plan and the time frame necessary to implement the money -purchase plan. DECISIONS/CONCLUSIONS: Decision deferred until we learn more about the money -purchase plan. NEXT STEP: This will be held for future discussion pending the resolution of discussions on the money -purchase plan. C. 5-YEAR VESTING MAIN POINTS: All private retirement funds must, by law, go to 5-year vesting by 1990, but municipalities are exempt. This will be a moot point if we go to a money -purchase plan. DECISIONS/CONCLUSIONS: The decision was made to not pursue this now, but keep as a later option, depending on the outcome of the money -purchase discussion. • NEXT STEP: This will be held for future discussion pending the resolution of discussions on the money -purchase plan. D. CAN THE BENEFICIARY MAKE A CHANGE IN THE BENEFIT? MAIN POINTS: Don Mazanec's May 4th letter stated that the Committee has the authority to allow for changes in how the benefit is paid under the plan (i.e. monthly, quarterly, semi-annually, lump -sum, etc.). DECISIONS/CONCLUSIONS: The Committee can allow the method of payment to be changed, with the proviso that if the changes are frequent or numerous, that the cost of making the changes would be borne by the beneficiary. NEXT STEPS: Creation of an "interpretation" to be kept in the notebooks, stating the conditions for such changes. Sue will create a draft for the Committee to review. E. CAN BENEFITS BE PAID TO AN ESTATE? MAIN POINTS: The spirit of this question can be addressed by a hypothetical situation: a single individual with two children, 57 years old,has worked for 15 years and is vested. Individual dies while still an employee. Currently his benefits would only go to a spouse. The children would receive nothing. This is an advantage to the retirement fund, as the • fund then keeps this money. This would impact the plan financially, but going to the money -purchase plan would make it a moot point also. • DECISIONS/CONCLUSIONS: Although the immediate conclusion that the GERC is designed to provide protection to an employee and spouse at retirement and not other forms of protection is notable, the decision was made to discuss this question further. NEXT STEP: This will be held for future discussion pending the resolution of discussions on the money -purchase plan. DISCUSSION TOPICS - NEW ITEMS 1. GERC MEETING TIMES MAIN POINTS: The Committee members desired to pre -schedule meetings to the extent possible. It was noted four meetings are scheduled annually to correspond to the presentation and discussion of the quarterly investment re port. Other meetings are scheduled as determined by workload. Study of the money -purchase plan option may require additional meetings. DECISIONS/CONCLUSIONS: Meetings for the next year, based on the quarterly report schedule were tentatively set: THURSDAY, NOVEMBER 16TH, 1:00 P.M. FINANCE CONFERENCE ROOM THURSDAY, FEBRUARY 15TH, 1990 1:00 P.M. FINANCE CONFERENCE ROOM THURSDAY, MAY 17TH, 1990, 1:00 P.M. FINANCE CONFERENCE ROOM THURSDAY, AUGUST 16TH, 1990, 1:00 P.M. FINANCE CONFERENCE ROOM • Meetings to facilitate the time study of the money -purchase plan could not be determined at this time. NEXT STEPS: Meetings needed for the money -purchase plan study will be scheduled as needed. 2. QUESTIONS FOR DON MAZANEC MAIN POINTS: When Don meets with us on August 25th we would like to have questions ready for him. DECISIONS/CONCLUSIONS: Jerry will talk to Mike Powers about how best to discuss comparing our plan with the money purchase plan when Don is here. NEXT STEPS: In preparation for our meeting with Don, Sue will ask him to be prepared to address the following: A. Confirm that Sue's notes of Don's 7-11-89 meeting with Alan and Sue are correct. B. The benefits calculation form Mollie uses: confirm that it is correct and will reduce the costs for retirement calculations. C. Whatever is requested as a result of Jerry's discussion with Mike Powers concerning the money -purchase plan. E C� J • D. Edwina Echevarria's question that was discussed at the 7/27/89 meeting. Is there any financial or other reason why a retiree cannot designate whomever they choose as a beneficiary? 3. RECORD KEEPING FOR EMPLOYEES WHO HAVE A BREAK IN SERVICE MAIN POINTS: The present system involves a letter in the employee's file documenting how the break in service affects their retirement benefits. DECISIONS/CONCLUSIONS: This method of record keeping leaves open the possibility for future problems. A more "systematized" method might be more dependable. NEXT STEPS: Mollie will talk to .Alix Gotthard about the possibility that the new payroll/personnel computer system can handle this type of situation. AGENDA 5 SCHEDULE FOR NEXT MEETING The next meeting will be August 25th at 1:30 p.m. with Don Mazanec in the Finance Conference Room. NOTE: THIS MEETING WAS LATER RESCHEDULED TO SEPTEMBER 13TH AT 9:00 A.M. The Agenda will be: 1. Discussion of the four items noted above under "NEW ITEMS: #2 QUESTIONS FOR DON MAZANEC". 2. Presentation and Discussion of the Actuarial Valuation Report for 1988. The meeting was adjourned at approximately 3:00 p.m.